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AM Best Places Credit Ratings of ECM Insurance Group Members Under Review with Negative Implications
[August 18, 2022]

AM Best Places Credit Ratings of ECM Insurance Group Members Under Review with Negative Implications


AM Best has placed under review with negative implications the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "a" (Excellent) of Everett Cash Mutual Insurance Company (Everett Cash Mutual) and 1st Choice Advantage Insurance Company, Inc., which are the members of ECM Insurance Group (ECM). Concurrently, AM Best has placed under review with developing implications the FSR of B++ (Good) and the Long-Term ICR of "bbb+" (Good) of Ever-Greene Mutual Insurance Company (Ever-Greene), an affiliate of Everett Cash Mutual. All companies are domiciled in Everett, PA.

The Credit Ratings (ratings) of ECM have been placed under review with negative implications following the recent announcement that Everett Cash Mutual has acquired the renewal rights of American Reliable Insurance Company. This transaction also includes a stock purchase agreement, subject to regulatory approval, and is expected to close before the end of the first quarter of 2023. This rating action further reflects the significant amount of execution risk surrounding ECM's robust growth initiatives and expanded geographic footprint.

The ratings of Ever-Greene have been placed under review with developing implications based on the strategic importance that Ever-Greene provides to the organization's overall business strategy and management's plan for additional net premium at Ever-Greene via a quota share reinsurance agreement with Everett Cash Mutual.

The ratings will remain under review until anagement executes the intended action plans and AM Best evaluates the full impact of these developments on the overall organization.



This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.


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